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April 25, 2010

Webcasting Rates 2011-2015

Webcasting issues can be confusing.  With different audio/radio stations paying different rates (commercial, “pureplay”, NPR and college/school stations, you will likely read and hear about many different fee structures and recordkeeping/reporting requirements.  CBI sets the facts straight with respect to stations at schools and colleges that are not NPR/CPB qualified on our webcasting pages.  Despite conflicting information you may find elsewhere, CBI’s information is based on fact with links to the pertinent law.  CBI is active in every step on behalf of members of the association.

For those wanting to know about the current situation, we summarize below.

– Fees for 2006-2010.  CBI and others appealed the amount of the minimum fee of $500 for this period.  MOST stations eligible to CBI members must pay the minimum fee and no more.  Our appeal of the minimum fee was remanded back to the Copyright Royalty Board in order for it to adjust, if necessary the amount of the minimum fee.  CBI has reached a compromise with SoundExchange concerning the minimum fee for 2009 and 2010 which allows stations to pay the minimum fee and opt-in to special reporting terms for that period.  After CBI reached this agreement, it withdrew from the remand proceeding.  There is only one entity left participating in that proceeding and the hearing on that case is expected to take place on May 18, 2010. CBI does not anticipate that the minimum fee will change.

– Fees for 2011-2015 are the subject of a legal proceeding that is now in progress.  Most CBI eligible stations may elect to participate in a settlement CBI reached with SoundExchange (see our guide) under the Webcaster Settlement Act of 2009.  CBI is a participant in that proceeding and has asked the Copyright Royalty Judges to adopt the terms and rates of that settlement in the legal proceeding.  A hearing on settlements is scheduled for May 5.

– Recordkeeping/Reports of Use.  CBI and others filed comments concerning recordkeeping issues last year.  CBI has been active on behalf of its members and eligible for years with numerous legal filings.  Information about recordkeeping proceedings is available on our recordkeeping/reports of use page and in the guide.  In short, the current status is that stations must submit reports of use or pay a waiver fee.  The level of reporting differs with the various options.   Under the CBI settlement, stations have the option of paying the waiver fee, or submitting limited information.  Under the regulations, BROADCAST STATIONS must report some data.  Webcasting only stations must report more data if they exceed a prescribed audience size.  Again, refer to the links!

– Appeal of Recordkeeping/Reports of Use Rules.  CBI has appealed the regulations implemented by the Copyright Royalty Judges, with another party joining the CBI appeal.  This matter is currently before the courts, but could become a non-issue for stations that opt-in to the CBI settlement provisions for 2009-2010 and if the Copyright Royalty Judges adopt the settlement before them as proposed by CBI and SoundExchange.

– Summary.  It is our hope that the CBI settlement will become law.   This will allow stations to just pay and report (if necessary) under the terms of the CBI settlement and not need to follow procedures to opt-in to the settlement.  The reporting requirements under the settlement are far easier for stations to comply with than anything else offered anywhere.  These issues could be resolved in May, but the Copyright Royalty Judges are not required to settle these issues until November or December.  Even at that point, the outcome could be appealed.

Still confused?  Don’t be.  Call or email us with questions!

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